Certain Clauses in the Commercial Contract and the Houses and Land Contract entitle a purchaser to conduct an identification survey of a chosen lot/land. This survey is designed to determine a property’s boundary and area, and to establish the structures within or outside this boundary. This is particularly important if a neighbouring block or structure encroaches onto your chosen lot or you have ideas of building or renovating that would encroach on another lot.
Before the Contract has been signed and a survey has been conducted, the purchaser has the ability to terminate or amend the Contract if there is an issue of encroachment. If this survey isn’t completed, there is a possibility that a purchaser may be paying for land that a neighbour is occupying.
In one particular example, after failing to complete an identification survey, a purchaser discovered that a neighbour’s block encroached on his/her land. After litigation proceedings, the Court decided that, as the neighbour didn’t build the encroaching structure, the neighbour was required to pay the value of the land and costs for registering a subdivision.
It’s important to note that conducting an identification survey is the right of the purchaser and not a requirement of the seller. Therefore, it is imperative that the purchaser ensures an identification survey is completed before the Contract is finalised to ensure a smooth transition of ownership without the hassle and cost of litigation proceedings.
If you’d like further details regarding the purchaser’s right to an identification survey, feel free to email email@example.com or call 3345 4388.